2016-0642401E5 Approved Status as SR&ED Entity

Principal Issues: Can the Institute obtain status of approved research institute for purposes of clause 37(1)(a)(ii)(B) of the Act?

Position: No. Withdrawal of request.

Reasons: See below.

Author: Couvrette, Amanda
Section: 37(1)(a)(ii)(B); 248(1)

XXXXXXXXXX                                                                                                                        2016-064240
                                                                                                                                                Amanda Couvrette
September 8, 2016

Dear XXXXXXXXXX,

Subject: Request for “Approved” Status under Section 37 of the Income Tax Act (the “Act”)

This is in reply to your letter of April 5, 2016, concerning your request that XXXXXXXXXX (“the Institute”) be designated as an “approved research institute” for the purposes of clause 37(1)(a)(ii)(B) of the Act.

As discussed in our letter dated April 21, 2016 and during our telephone conversation of July 6, 2016 (XXXXXXXXXX/Couvrette), before an entity can be “approved” under subsection 37(7) of the Act, the Minister needs to be satisfied that all the necessary requirements for such approval, as set out in the Canada Revenue Agency’s publication entitled “Third-Party Payments Policy” dated December 18, 2014, are met.  As indicated in XXXXXXXXXX email of August 9, 2016, we have been advised that the Institute does not currently meet all the necessary requirements for approval.

We are therefore closing our file on this matter.  If circumstances change in the future we would be pleased to reconsider this matter.

Yours truly,

Michael Cooke, C.P.A., C.A.
Manager
Business Income and Capital Transaction Section
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

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